ARHS earnings analysis
What we found in ARHS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
For the three months ended March 31, 2026, Arhaus reported revenue of $314.3 million, reflecting a 0.9% increase from $311.4 million in the corresponding period of 2025. However, net income fell to $2.2 million from $4.9 million, indicating profitability struggles amid rising costs. Gross margin as a percentage also declined to 36.4% from 37.1% in the previous year.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth despite cost pressures
- Revenue increased by $2.9 million (0.9%) to $314.3 million compared to Q1 2025.
- Gross margin decline
- Gross margin decreased to $114.4 million, or 36.4% of revenue, down from 37.1%.
- Lower net income
- Net and comprehensive income fell to $2.2 million, down from $4.9 million.
- Increased SG&A expenses
- SG&A expenses rose to $112.2 million, up $2.1 million from the prior year.
- Strong cash liquidity position
- Cash and cash equivalents of $177.1 million maintain liquidity for operations.
- Stability in Showroom count
- Total Showrooms held steady at 107 locations with no openings or closings during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Cost increases impacting profitability
- Increased product costs by $4.1 million and higher occupancy costs negatively impacted margins.
- Decline in demand
- Comparable written sales decreased by 5.7%, indicating weakening demand for products.
- Material weaknesses in internal controls
- Identified material weaknesses in internal controls could affect accurate financial reporting.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.02
- Gross margin
- 36.4%
- Operating margin
- 0.73%
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
What came before.
- 10-K · February 26, 2026
- Arhaus reports revenue of $1,379,222,000 for the year ended December 31, 2025, up 8.5% from 2024, driven by omni‑channel growth and showroom expansion to 107 locations. Gross margin compressed to 38.9% (from 39.4% in…
- 10-Q · November 6, 2025
- Arhaus reported Q3 net revenue of $344,570,000 (up from $319,133,000 a year ago) and diluted EPS of $0.09 (vs. $0.07 prior year). Gross margin for the quarter was $133,421,000 (≈38.7%) and operating income was…
- 10-Q · August 7, 2025
- Arhaus reported a strong Q2 (three months ended June 30, 2025) with revenue of $358,435,000 and diluted EPS of $0.25, both meaningfully above the prior-year quarter and consensus. Gross margin and operating margin…
- 10-Q · May 8, 2025
- Arhaus reported revenue of $311,372 (in thousands) for Q1 2025, up $16,210 from Q1 2024 but with materially compressed profitability: gross margin dollars were essentially flat at $115,587 while operating income fell to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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